U.S. Senators John McCain (R-AZ) and Jay Rockefeller (D-WV) today offered an amendment that prohibits Fannie Mae and Freddie Mac executives from receiving future multi-million dollar bonuses as long as the government-backed mortgage companies remain in federal conservatorship. It was recently reported that the Federal Housing Finance Agency approved $12.8 million in bonuses to ten top Fannie and Freddie executives.
"It's outrageous and unacceptable that Fannie Mae and Freddie Mac executives would expect multi-million dollar bonuses after receiving $170 billion in taxpayer bailouts and recently requesting an additional $13.8 billion out the pockets of hardworking Americans -- many of whom are underwater on their mortgages," said Senator John McCain. "This amendment makes clear that as long as Fannie and Freddie are in government conservatorship, bonuses such as these will not be paid out. The American taxpayer has been the victim of outright corruption and blatant abuse at the hands of Fannie Mae and Freddie Mac for decades -- it must stop. Americans deserve better."
"It's indefensible that two organizations that accepted billions in taxpayer dollars to keep them afloat, are now giving extreme bonuses using that same taxpayer money. And, they are still failing to help many homeowners in need," said Senator Jay Rockefeller. "Too many families are still facing foreclosure and struggling to make ends meet, and it's just unacceptable that their money is supporting unnecessary bonuses. Additionally, recent news reports have claimed that Fannie Mae and Freddie Mac are blatantly betting against the homeowners they are supposed be helping. This is just wrong. We must restore America's trust in our housing institutions, and this legislation would take a giant leap forward in making that possible."
Additional cosponsors at this time are Senators Mike Johanns (R-NE), Claire McCaskill (D-MO), John Barrasso (R-WY), Lindsey Graham (R-SC), Mike Enzi (R-WY), Tom Coburn (R-OK), John Thune (R-SD) and Roy Blunt (R-MO).